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Enron Mail |
---------------------- Forwarded by Phillip K Allen/HOU/ECT on 01/26/2001
09:41 AM --------------------------- From: Chris H Foster 01/26/2001 05:50 AM To: Phillip K Allen/HOU/ECT@ECT cc: Vladimir Gorny/HOU/ECT@ECT Subject: Status of QF negotiations on QFs & Legislative Update Phillip: It looks like a deal with the non gas fired QFs is iminent. One for the gas generators is still quite a ways off. The non gas fired QFs will be getting a fixed price for 5 years and reverting back to their contracts thereafter. They also will give back I would expect that the gas deal using an implied gas price times a heat rate would be very very difficult to close. Don't expect hedgers to come any time soon. I will keep you abreast of developments. C ---------------------- Forwarded by Chris H Foster/HOU/ECT on 01/26/2001 05:42 AM --------------------------- Susan J Mara@ENRON 01/25/2001 06:02 PM To: Michael Tribolet/Corp/Enron@Enron, Christopher F Calger/PDX/ECT@ECT, Phillip K Allen/HOU/ECT@ECT, Alan Comnes/PDX/ECT@ECT, Jeff Dasovich/NA/Enron@Enron, Michael Etringer/HOU/ECT@ECT, James D Steffes/NA/Enron@Enron, Sandra McCubbin/NA/Enron@Enron, Paul Kaufman/PDX/ECT@ECT, Chris H Foster/HOU/ECT@ECT cc: Subject: Status of QF negotiations on QFs & Legislative Update This from a conference call with IEP tonight at 5 pm: RE; Non-Gas-fired QFs -- The last e-mail I sent includes the latest version of the IEP proposal. Negotiations with SCE on this proposal are essentially complete. PG&E is OK with the docs. All QFs but Calpine have agreed with the IEP proposal -- Under the proposal, PG&E would "retain" $106 million (of what, I'm not sure -- I think they mean a refund to PG&E from QFs who switched to PX pricing). The money would come from changing the basis for the QF payments from the PX price to the SRAC price, starting back in December (and maybe earlier). PG&E will not commit to a payment schedule and will not commit to take the Force Majeure notices off the table. QFs are asking IEP to attempt to get some assurances of payment. SCE has defaulted with its QFs; PG&E has not yet -- but big payments are due on 2/2/01. For gas-fired QFs -- Heat rate of 10.2 included in formula for PG&E's purchases from such QFs. Two people are negotiating the these agreements (Elcantar and Bloom), but they are going very slowly. Not clear this can be resolved. Batten and Keeley are refereeing this. No discussions on this occurred today. Status of legislation -- Keeley left town for the night, so not much will happen on the QFs.Assembly and Senate realize they have to work together. Plan to meld together AB 1 with Hertzberg's new bill . Hydro as security is dead. Republicans were very much opposed to it.
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